Education Portfolio Audit Outcomes

Video The Portfolio Committee on Basic Education received a briefing from the Auditor-General of South Africa (AGSA) on the audit outcomes of the Department of Basic Education (DBE), its entities and the nine provincial education departments (PEDs). Members examined recurring financial and performance management weaknesses, procurement irregularities, infrastructure delays and inadequate consequence management, focusing on their implications for learners. The national portfolio managed R38 billion, with the DBE, the South African Council for Educators (SACE) and Umalusi receiving unqualified audit opinions with findings. National irregular expenditure totalled R96.3 million, while cancelled infrastructure projects generated R13.4 million in fruitless and wasteful expenditure. The DBE had investigated its reported irregular expenditure cases and recovered R21.6 million through the material irregularity process. However, unreliable early childhood development (ECD) information and procurement delays continued to affect reporting and implementation. The PEDs managed R340 billion. KwaZulu-Natal improved to an unqualified opinion with findings, bringing the total to seven, while Mpumalanga and North West remained qualified. All nine PEDs had material performance findings. Provincial irregular expenditure increased from R7.1 billion to R20.7 billion, and fruitless and wasteful expenditure rose from R7.4 million to R175 million. The closing irregular expenditure balance reached R35.1 billion. Of 66 material irregularities, 35 had been addressed, and 31 remained active. Members questioned why funding was returned while learners faced unsafe sanitation, overcrowded classrooms and inadequate infrastructure. They sought explanations for financial losses, write-offs, duplicated projects, allegedly fabricated tender documents and delays in investigations. Exchanges became heated when corruption allegations were raised. The Chairperson cautioned that irregular expenditure did not itself prove theft and that specific allegations required evidence. Members also challenged whether unqualified audit opinions adequately reflected persistent failures affecting service delivery. AGSA clarified that textbook findings concerned insufficient or inconsistent supporting evidence and did not necessarily establish that learners lacked textbooks. Mpumalanga and the Eastern Cape maintained that textbooks had been delivered. KwaZulu-Natal similarly maintained that examination papers had been delivered, although the audit finding remained unresolved, and reported that its overdraft had decreased from R1.9 billion to R900 million. North West confirmed that the school nutrition indicator had been included in its current performance plan. Limpopo undertook to conclude its learner transport investigation within two months. Gauteng and the Western Cape attributed substantial irregular expenditure to procurement interpretation and delegation issues. Members highlighted the consequences of infrastructure failures: 95% of 22 audited projects had findings, 59% experienced delays averaging 32 months and 27% had poor building quality. They requested consequences for contractors and officials, recovery of losses and details of affected schools. Concerns also covered interrupted learner transport, ECD funding and delayed modernisation of the South African School Administration and Management System (SA-SAMS). The DBE attributed returned funding to procurement delays, provincial underspending and National Treasury restrictions on extending sanitation projects. It reported dismissals, contract terminations and recovery action involving implementing agents. It maintained that investigations into the national catalogue had found no fraud or irregularity, but had identified the absence of a governing policy. Members challenged its assurances about data quality and requested specific SA-SAMS implementation details. The AGSA recommended detailed corrective plans, individual accountability, measurable performance obligations and stronger use of internal audit and audit committees. The Committee directed the DBE to provide written reasons for SA-SAMS delays and implementation timelines, and requested follow-up on school-specific complaints. AGSA undertook to provide outstanding expenditure and infrastructure details. The Chairperson proposed formally incorporating the AGSA’s oversight recommendations into the Committee’s programme.